The other day, I read a fantastic article on pricing your services and products. This article was written for women entrepreneurs, but I saw how it could be applied by any business or non-profit. It made me think about all the steps in the sales strategy. The first step, of course, is making sure you have a price figured out for your business, but how do you know if you are charging the right price. For non-profits, how much should you be asking for when requesting donations?
A solid pricing structure for your sales strategy starts with knowing what you are trying to earn and/or how much you want to raise monthly or annually. Figuring out this simple goal can help you create a very targeted and strategic sales plan...
If it's hard for you to determine an overall goal, you need to add up all the expenses for your business or organization. You should at least be asking for or setting your prices to cover these expenses. Now add in salaries, benefits, what you personally need to make, and see what that number comes to. Here is your goal!
Let's say that number is $150,000/yr. Now determine the rest of the sales strategy. In its most basic form, the strategy would be to sell a certain number of units per year to reach this amount. For a non-profit, it would be getting a certain number of donations per year. So, if the price of your product or service is $150.00 each, then you need to sell 1000 of these. Of course, not all of us are in the business of selling widgets or units. Also, most of us offer several different kinds of services. Non-profits ask for various donation amounts.
If you do have a variety of different services and pricing tiers, then you need to create a list of these services or products and their prices. Then, determine for each service and product, the number of hours, or units, you need to sell annually to reach your total amount.
Here is a hypothetical example: Your business offers consulting services, a hand-book, and does speaking engagements and workshops.
Your charges are as follows -
This reaches your annual goal. Non-profits can do these calculations based on the three different levels of ask, one at $100, $250, and $500. You can have more than 3 ask levels, but let's start low for your simple sales strategy.
The rule is that you need to get in front of or "in-touch" with as many people and communication platforms as possible. The simple sales strategy includes making various lists of all the ways you can communicate with, and get in front of, your audience to sell or solicit enough to make your annual income goal.
Create this list and start scheduling it into your calendar. Do you need to start attending more networking events and being more visible? Be available for more speaking engagements? Up your game on social media? Schedule more email blasts? Grow your current mailing list? If so, start doing it.
With this sales plan in place, you can work strategically and productively. If you aren't hitting your goals, your plan will help you to see why and allow you to make moves to get back on track. That is the beauty of a plan. It allows you to measure and evaluate your efforts.
Stay on track and hit your sales goals!
Do you have a simple sales strategy in place? Please share how you determine what sales actions to take each month, every quarter, or annually. Leave a comment for me below.
Here's to your Illumination!